What is Sensex and how is it calculated?

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What is Sensex and how is it calculated?
The Sensex is an extremely popular term not only in financial circles, but also beyond that. The Sensex basically means sensitive index and it is a commonly used term for the Bombay Stock Exchange Sensitive Index. The sensex tracks the movements of the 30 largest stocks and it is the oldest index in India.

Now, these 30 stocks are selected based on various parameters and representation and are generally high capitalisation stocks. Today, the sensex is regarded as the barometer of the markets and is used to decribe the trend of the market.

How Sensex is calculated?

The Sensex is calculated on the movement of the 30 largest stocks on BSE, by a method that is known as the “ free float market capitalisation” method, which is the widely expected method across the globe. In a company only few shares available in trading except shares held by founders or government which may not available for trading.

The list of stocks that comprise the sensex presently include:

Bajaj Auto, bharti Airtel, Bhel, Cipla, Coal India, DLF, Gail India, HDFC, HDFC Bank, Hero Motocorp, Hindalco Inds, Hindustan Unilever, ICICI bank, Infosys, ITC, Jindal Steel, L&T, Mahindra & Mahindra, Maruthi Suzuki, NTPC, ONGC, RIL, SBI, Sterlite Inds, Sun Pharma, Tata Motors, Tata Power, Tata Steel, TCS and Wipro.

Know about India's third bourse after Bombay Stock Exchange and National Stock Exchange, known as the MCX- SX.


Read more about: sensex, bse
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